“CONGRATULATIONS! You have just won R100,000! Please send banking details to the above email.” We are all familiar with these types of messages. People lose thousands every day to scams such as this. The first questions that pop into your head include “How did they obtain my information?” and “Who else has access to my private information?”

Don’t leave your customers and employees vulnerable.

Do you feel insecure, anxious and doubtful about the accessibility and security of your personal information? In a time where personal data is readily shared and used, it is easy to understand why most people feel apprehensive when giving out their details to third parties. Besides for the Consumer Protection Act, there is not much else that protects ordinary citizens from becoming the next victim of data fraud.

You may have heard of POPI (Protection of Personal Information Act). Although the acronym sounds like the name of a delicate flower, be assured that this act is far more robust and bold.

The Protection of Personal Information Act is a piece of legislation that was signed into law in 2013. This Act regulates all persons who are responsible for processing personal information such as telephone numbers, ID numbers and physical and email addresses to name a few. The Act lays down the guidelines for how the information should be handled, stored and secured. The POPI Act Summary states that entities that are responsible for your information will be held accountable if they abuse or compromise your information in any way. Contravention carries strict and substantial penalties including large fines and jail time.

The Act is not limited to certain entities; any and all organisations which store, collect and process personal information are required to comply.

Although POPI was signed into law in November 2013, the commencement date has not yet been finalised. The Act will only come into effect once this date is announced, after which companies will then have to comply within 12 months.

The Protection of Personal Information Act adds yet another obligation to the workload of businesses, which places significant demands on resources such as cost and time. However, the POPI act does have a positive effect for small businesses. A phased, rationalised approach to integration and early compliance will avoid pressures on organisational structures and resources and streamline systems overall. The following benefits can be experienced:

Trust is said to be the basis of loyalty. In business, this is essential for retaining and attracting customers. Customers will have increased satisfaction and will be more likely to engage with an entity if they know their personal data will be kept safe and secure. When an entity maintains POPI compliance, they will be able to reassure customers.

Whilst reviewing the current system of information sourcing, processing and storage, inefficiencies in a company will be picked up and better processes initiated overall.

In an effort to achieve compliance, many organisations will need to analyse and review their databases, in order to ensure that no personal details are included on correspondence to unauthorised parties. These organisations can therefore also update databases to ensure that all consumer and stakeholder information is correct and relevant.

For technology-based companies such as cloud service providers, the ability to guarantee privacy and compliance for their customers can be leveraged as a differentiator and a driver of competitive advantage. Protection of personal information is highly valued by customers, and organisations that can assure customers that their information is secure will attract more customers.

Confidentiality of information of customers and employees is one of the most important pillars of any business. Knowing what to do with data and how to use it and store it safely and effectively will be more than just a nice-to-know. Instead this becomes a must-know. Avoid unnecessary penalties and fines and get your business POPI compliant now.

If you are ready to implement, download our Protection of Personal Information Act summary guide below: